With mounting costs of public transport and increasing traffic, owning a vehicle of your own has become more of a necessity than extravagance. When compared to cars, a two-wheeler is easier to maintain and consumes less fuel. If you are worried about the unexpected expenses that you will incur if you purchase a motorbike, applying for a two-wheeler loan is the best thing to do. With lot of leading banks in India offering two wheeler loans, you can not only get the vehicle of your dreams in no time but also pay back the loan without any financial stress through easy instalments.
Before applying for a two-wheeler loan, you must always discuss about the prevailing interest rates with your banker and check your affordability. Since the interest rates can make or break your loan deal, always pay attention to the finer details about the rate of interest.
Also Read: Two Wheeler Insurance.
Features and Benefits of Two Wheeler Loans:
With most of the banks offering loans up to 90% of the on-road price of the vehicle, you can purchase any brand new two-wheeler without any second thoughts.
Burning up all your savings to purchase a two-wheeler is a risky option. Instead, avail a two-wheeler loan to relieve you of the financial burden. As an added advantage, you can also plan your budget effectively and pay back the loan in affordable EMIs.
Two-wheeler loans usually cover the cost of insurance, accessories and registration.
To get more out of your two-wheeler loan, check for loan partnership options with your automobile dealer.
Two-wheeler loan requires minimal documentation and is offered for all sections of people and all class of customers.
The income criteria is also lenient and most of the banks offer motorbike loans for people with an annual income of Rs.50,000.
There is either no prepayment penalty or a nominal foreclosure charge for paying off the two-wheeler loan ahead of the tenure.
Most of the banks also offer flexible repayment options which will enable the customer to choose a comfortable tenure.
Two Wheeler Loan Interest Rates:
The interest rates for two-wheelers loans in India vary between 13% to 27% depending on the bank, type of vehicle, applicantâ€™s employment type and source of Income.
The interest rates are usually floating and is linked to the base rates. Because a two-wheeler is a depreciating asset, the interest rates are generally higher when compared to other loan products. Interest rates for two-wheeler loans may also depend on other factors like the tenure, margin and type of vehicle.
Current Two Wheeler Loan Interest Rates:
Given below are the current interest rates for two wheeler loans offered by Indian banks and financiers:
|Name of bank||Two wheeler Interest rate|
|SBI||MCLR + 3.00% = 12.10%|
|HDFC||Super Bike Two wheeler Loan||APR: 9.96% to 15.74%||IRR: 9.95% to 15.50%|
|Two wheeler Loan||11.37% to 33.15%||11.01% to 24.07%|
|Saurashtra Bank||Repayment Period upto 3 Years||15%|
|Repayment Period above 3 Years, upto 5 years||16%|
|Bank of Baroda||One year MCLR + Strategic Premium + 4.00%|
|Punjab National Bank (14.50 %)||In which monthly income is being paid via concerned branch and/ or under check off facility||< 3 years||MCLR+3.10%|
|equal to 3 years||MCLR+3.60%|
|For every other loan including Business concerns||< 3years||MCLR+4.10%|
|equal to 3 years||MCLR+4.60%|
|Power Ride||Upto 36 months||MCLR+1.60%|
|Andhra Bank||For loan term up to 36 months||MCLR + 1.80%|
|For loan terms more than 36 months||MCLR + 1.80% + 0.25%|
|Bajaj Fin Serv||Customers are segregated into three bands, namely,|
|Medium||27% to 30%|
|L & T Finance||Upto 23%; actual rate varies on fluctuations in market and credit worthiness of the borrower|
|UCO Bank||For General category - MCLR of 1 Year + 4.40%|
|Accounts with full liquid collateral security, 1.00% interest Rebate|
|Accounts with 50% liquid collateral security, 0.50% interest Rebate|
|Vijaya Bank||MCLR 1 Year + 2.20% =11.65% p.a. (floating)|
|Oriental Bank of Commerce||Upto 36 months||BR + 0.50% = 10.20%|
|Upto 84 months||BR + 0.75% = 10.45%|
|Shriram City Union Finance||At the lenderâ€™s discretion on the basis of schemes opted by the borrower|
|Bank of India||For a new vehicle, for all tenures within the repayment period of the scheme||BSS (0.10%) above 1 Year MCLR (Presently 9.50 %)|
|Punjab & Sind Bank||New Vehicles Two Wheeler||One Year MCLR (9.60%)+ 2.00% = 11.60% One year MCLR+3.10% (PER: 13.40% p.a.)|
|Lakshmi Vilas Bank|
|Nainital Bank||Base rate + 0.25% (Floating)|
|City Union Bank||Base rate||Base rate + 7% = 17.50%|
|BPLR||PLR + 1% = 17.25%|
|State Bank of Mysore||Upto 5 years||MCLR + 6.55% = 16.05%|
|State Bank of Travancore||Rs.50000 and below||13.85%|
|State Bank of Patiala||Floating Rate of Interest||15.75% p.a. i.e. 6.25% above MCLR|
|Fixed Rate of Interest||16.00% p.a. i.e. 6.50% above MCLR|
|Central Bank of India||Floating||MCLR + 0.40%|
|Fixed Rate ( Repayment within 36 months)||MCLR + 0.40%|
Eligibility and Documentation for Two Wheeler Loans:
In India, most of the banks offer two-wheeler loans for people in the age group of 18 to 65. The applicant can be a student, a salaried profession or a self-employed customer. Select banks also offer specialized two-wheeler loan products for agriculturists. The income criteria for two-wheeler loans depend on the type of loan and is at the discretion of bank.
Documents - The applicants have to submit an ID proof and a proof of address. Income documents like bank account statements, salary slips, income tax return statements and certificate of employment is also required. Agriculturists and self-employed people have to submit relevant supporting documents to avail a loan for two-wheeler.
How to Compare Two Wheeler Interest Rates?
Before deciding on a two-wheeler loan product, carefully analyze about all the features that it has to offer.
Check if the interest rates for two-wheeler loan with regards to a particular bank is floating or fixed. Also, use a two-wheeler loan EMI calculator to decide your loan affordability.
In a two-wheeler loan EMI calculator, all you have to enter is the loan amount, tenure and the interest rates. The calculator will project the monthly EMI along with the repayment schedule which will help you decide if the loan on that interest rate is affordable.
Compare different two-wheeler loan products and check if features like nil-foreclosure charges, insurance and high quantum is offered. Also, make sure you compare the interest rates for two-wheeler loans using a third-party comparison website.
News about Two Wheeler Loan
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Dream Yuga is now available in six colours, Black, Black with Athletic Blue Metallic, Black with Heavy Grey Metallic, Black with Radiant Red Metallic, Sports Red and Pearl Amazing White.